Key Developments For PDL BioPharma, Inc.
PDL BioPharma, Inc. (PDLI.O) (Nasdaq)
PDL BioPharma Inc. Announces Ex-Dividend Date Of November 27 For Special Dividend
PDL BioPharma Inc. announced that NASDAQ has established November 27, 2009 as the ex-dividend date for its $200 million special dividend to stockholders resulting from the securitization transaction completed on November 2, 2009. The dividend will be paid on December 15, 2009 to all stockholders of record on the record date, December 1, 2009. NASDAQ has set the approximate per share amount of the dividend at $1.67 per share of common stock for purposes of the ex-dividend date on November 27, 2009. This approximate per share amount is based on the number of shares of the Company's common stock outstanding on September 30, 2009.
PDL BioPharma Inc. Announces Special Dividend Payment
PDL BioPharma Inc. announced that it will pay a $200 million special dividend to stockholders, with part of the proceeds from the $300 million securitization transaction completed on November 2, 2009. All stockholders owning shares of PDL on December 1, 2009 will be paid a special dividend on December 15, 2009.
PDL BioPharma Inc. Announces Closing of $300,000,000 Securitization Transaction
PDL BioPharma Inc. announced that it has closed on its previously disclosed $300 million securitization transaction intended to monetize certain of its antibody humanization patents and royalties. Morgan Stanley & Co. Incorporated acted as sole initial purchaser for the securitization. Under the terms of the securitization transaction, PDL sold to QHP Royalty Sub LLC (QHP), a newly-formed wholly-owned subsidiary of PDL, certain rights under its non-exclusive license agreements with Genentech, Inc., a wholly-owned subsidiary of Roche Holding, Ltd., including the right to receive 60% of the royalties from sales of Avastin (Bevacizumab), Herceptin, Lucentis and Xolair (Omalizumab) and from sales of future products. QHP issued $300 million in aggregate principal amount of its QHP PhaRMA Senior Secured Notes due 2015. The Notes bear an interest rate of 10.25%. The royalties and other payments, if any, that QHP will be entitled to receive under the agreements with Genentech, together with any funds made available from certain accounts of QHP, will be the sole source of payment of principal of, and interest and premium on, the Notes, which are secured by a continuing security interest granted by QHP in its rights to receive payments under such agreements and all of its other assets and a pledge by PDL of its equity ownership interest in QHP. The Notes may be redeemed at any time prior to maturity, in whole or in part, at the option of QHP at a make-whole redemption price.
PDL BioPharma Inc. Announces Pricing of $300,000,000 Securitization Transaction
PDL BioPharma Inc. announced that it has priced a $300 million securitization transaction intended to monetize certain of its antibody humanization patents and royalties. Upon closing of the transaction, which is expected to occur on November 2, 2009, PDL will sell to QHP Royalty Sub LLC (QHP), a newly-formed wholly owned subsidiary of PDL, certain rights under its non-exclusive license agreements with Genentech, Inc., a wholly-owned subsidiary of Roche Holding, Ltd., including the right to receive 60% of the royalties from sales of Avastin (Bevacizumab), Herceptin (Trastuzumab), Lucentis (Ranibizumab) and Xolair (Omalizumab) and from sales of future products, if any, for which Genentech may take a license under the related agreements with Genentech. QHP will issue $300 million in aggregate principal amount of its QHP PhaRMA(SM) Senior Secured Notes due 2015 (Notes) in a non-registered offering. The Notes will bear an interest rate of 10.25%. PDL intends to use a sizable portion of the net offering proceeds from the securitization transaction to pay a special cash dividend to stockholders..
PDL BioPharma Inc. Lowers High End Of Prior FY 2009 Revenue Guidance; Lowers FY 2009 Net Income After Tax Guidance
PDL BioPharma Inc. revised fiscal 2009 revenue guidance to $310 to $320 million. The revised guidance includes MedImmune royalties. The Company's previous guidance of $310-$325 million did not include MedImmune royalties due to ongoing legal disputes. The Company is changing its guidance due to less than anticipated product sales growth in Avastin, Herceptin and Tysabri. Also, anticipated royalties from sales of Avastin previously included ex-US manufacturing and sale of this product at a 3% royalty rate which did not occur. Market withdrawal of Raptiva earlier in 2009 also impacted results. Net income after taxes for fiscal 2009 is projected in the range of $187-$195 million.
